1. 7 Days Group Holdings Limited
Investor Presentation
March 2013

2. Safe Harbor Statement
 Statements in this presentation contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the Private Securities Litigation Reform
Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,”
“plans,” “believes,” “estimates” and similar statements and including, among other things, 7 Days Group’s revenue guidance for the first
quarter of 2013 and business forecast for 2013 including the expected number of hotels to be opened, Company’s business strategies, its
ability to leverage economies of scale and its ability to achieve strict cost controls and to deliver continued growth. These forward-looking
statements are not historical facts but instead represent only the Company’s belief regarding future events, many of which, by their nature,
are inherently uncertain and outside of the Company’s control. The Company’s actual results and financial condition and other
circumstances may differ, possibly materially, from the anticipated results and financial condition indicated in these forward-looking
statements. In particular, the Company’s operating results for any period are impacted significantly by the mix of leased-and-operated
hotels and managed hotels in its chain, causing the Company’s operating results to fluctuate and making them difficult to predict.
 Other factors that could cause forward-looking statements to differ materially from actual future events or results include risks and
uncertainties related to: uncertainties associated with factors typically affecting the lodging industry, including changes in economic
conditions, adverse weather conditions, natural disasters or outbreaks of serious contagious diseases in markets where the Company has
a presence; uncertainties regarding the Company’s ability to respond to competitive pressures; uncertainties regarding the Company’s
ability to manage its expected growth; uncertainties regarding the Company’s ability to continue its growth and achieve profitability; risks
associated with the Company’s limited operating history and historical operating losses, uncertainties regarding the Company’s ability to
fund its working capital needs; uncertainties regarding its ability to successfully and timely identify, secure or operate additional hotel
properties. The financial information contained in this release should be read in conjunction with the consolidated financial statements and
notes thereto included in the Company’s 2011 Annual Report on Form 20-F filed with the SEC on April 26, 2012 and is available on the
SEC’s website at www.sec.gov. For a discussion of other important factors that could adversely affect the Company’s business, financial
condition, results of operations and prospects, see “Risk Factors” beginning on page 8 of the Company’s 2011 Annual Report on Form 20-
F. The Company’s actual results of operations for the fourth quarter 2012 are not necessarily indicative of its operating results for any future
periods. Any projections in this release are based on limited information currently available to the Company, which is subject to change.
Although such projections and the factors influencing them will likely be changed, the Company will not necessarily update the information.
Such information speaks only as of the date of this release.
1

3. Agenda
Company Overview
Investment Highlights
Growth Strategies
Financial and Operational Highlights
Appendix
2

4. Fast-growing National Economy Hotel Market Leader
No. 1 in growth in hotel expansion
• Highest number of new hotels opened in 2010 – 2012
• 1,345 hotels in operation, expect to have 2,000 hotels by 2014
• 401 new hotels opened during 2012 – industry record
• Total Transaction Value (TTV1) year-over-year growth 50.4% in 2012
No. 1 in loyalty programs e-Commerce platforms
• Over 52.9 mm members
• Highest room night contribution from members
• Website has highest internet traffic ranking
• Highest online booking ratio
“No. 1 Brand Influence in Economy Hotel Industry”
-- China Brand Power Index, Ministry of Industry and Information Technology, 2012
-- CCTV China Brand, CCTV, 2012
Sustainable profitability:
• 2010Q1 to 2012Q4 – twelfth consecutive profitable quarters
1Definition of Total transaction value: total room revenue from leased-and-operated hotels and managed hotels. The metric is highlighted as an indicator of the scale
and reach of 7 Days’ brands.
3

5. Accelerated Growth Driven by Managed Hotels
Opening schedule and growth roadmap Total addressable market in China
Managed Hotels L&O Hotels
2,000+
1,704
1,344
944 1163
568 853
337 533
247
101 491 541
321 411
236
2009 2010 2011 2012 2013E 2014E * Source: China Tourism Bureau as of 12/31/10 and Company report
2006 2007 2008 2009 2010 2011 2012
Total Transaction Value 0.06 bn 0.3 bn 0.8 bn 1.3 bn 2.1 bn 3.7 bn 5.6 bn
Cities covered 7 20 33 54 89 141 208
Members ~0.2m ~2m ~6m ~10m ~16.5m ~33.8m ~52.9m
4

6. Agenda
Company Overview
Investment Highlights
Growth Strategies
Financial and Operational Highlights
Appendix
5

7. Unique Business Model Leads to Faster Growth
 Managed hotel model provides the best alignment of Accelerated pace of hotel openings
interest with owners and most attractive terms
 Largest membership base with improved brand recognition
and growing presence in new markets
 Well-designed and executed hiring and in-house training
program + incentive scheme
 Best-in-class IT infrastructure and industry leading e- 114
commerce system
 Single brand strategy in economy segment, with highly
standardized and efficient hotel operations
6

8. Rapid Expansion Supports Sustainable Margin and Cash Flow
Growth
Strategic shift Net revenues (RMB mm)
 Focused on managed hotels to drive the long-term
growth
• Lower risk
• Higher margin
• Better cash flow
 Leverage economies of scale inherent in managed
hotel business model
Rapid hotel expansion driving top-line growth and total
EBITDA exl. Share-based compensation expenses (RMB mm)
transaction value (TTV)
 Leads to increasing economies of scale, supporting
profit growth
 Twelfth consecutive profitable quarters since 1Q10
20%  Improved cash flow
7

9. Largest Membership Base Provides Competitive Aadvantages
Largest and most effective membership base: 52.9 million members
Additional
Lower revenue streams
customer  Rental car and
acquisition cost air ticket service
on our website
Lowers
Established
operating
industry leader
costs
Helps improve Enhances
 7 Days Club far Provides built-  200k+ surveys received
operating customer
exceeds competitors’ in customer loyalty from members every
performance
loyalty programs in base month¹
terms of size and  Allowing faster  Majority of total
benefits expansion  One of the highest room nights by
overnight occupancy repeat customers
 Shorter ramp up rates in the industry
period
Best-in-class proprietary integrated IT System
Most active e-commerce platform
8

10. Industry Cost Leader With Higher Operational Efficiency
Our distinguished competencies in membership program, eCommerce and information technology, as well as our unique
ability to interact directly with our customers ensures high level of efficiency in both hotel and headquarter operations:
Lower conversion costs Lower rent per room Lower staff costs
 Streamlined product design  Target existing properties in  Lean operations while
prime area maintaining high customer
 Modular fixtures and
satisfaction
furnishings  Largest membership base
allows the flexibility to select  Performance-oriented incentive
 Lower Cap-ex per room slightly off-main-street buildings
program
 Efficient use of real estate
Conversion cost per room¹
Rent cost¹ (RMB/day/sq) Staff-to-room¹
(RMB 000)
3.0
80
Industry Average Industry Average
Industry Average 0.50
2.0
60
0.25
40 1.0
20 0.0 0.00
¹ source: 2009 China economy hotel survey
9

11. Unique Competitive Edge Improves Brand Influence and Drives
Demand
Always Focus on What Consumers Want Most ……
High-quality services and More interactive with Value-oriented pricing
members
amenities in core areas
 Better beddings  Cultivates customer  Bring more value to
loyalty members
 Better showers
 Encourage members to  Competitive and
 Better cleanliness consistent pricing
monitor the hotel
service
 Enhances member
 Hotel rating based on stickiness
member’s reviews
“No. 1 Brand Influence in Economy Hotel Industry”
-- China Brand Power Index, Ministry of Industry and Information Technology, 2012
-- CCTV China Brand, CCTV, 2012
10

12. Agenda
Company Overview
Investment Highlights
Growth Strategies
Financial and Operational Highlights
Appendix
11

13. 7 Days’ Long Term Growth Strategies
Continued market penetration with one-brand strategy in
economy hotel segment
7%
14%
FY 2014
44%
35%
FY 2012 Target 2,000+ hotels
in operation
320
Managed Hotels Total Current Coverage: 208 cities
81
 City with 1 hotel: 44% of total cities
L&O Hotels
 City with 2–5 hotels: 35%
 City with 6–9 hotels: 7%
 City with more than 10 hotels: 14%
12

14. Strategic Focus on Managed Hotels to Drive Profitable Growth
Asset-light Growth Strategy Portfolio mix as at 31 Dec 2012
 Focus on managed hotels as main growth driver Leased-and-
Operated hotels
 Support continued rapid growth, stable revenue 37%
generation, expanding brand presence and influence
with lower capital requirements and higher return on
employed capital
Managed
 Strategic shift expect to increase profitability and free hotels
cash flow generation 63%
 Leverage 7 Days’ leading loyalty club and best-in-
Pipeline mix as at 31 Dec 2012
class proprietary e-Commerce platform
Leased-and-
Operated hotels
9%
Managed
hotels
91%
13

15. Agenda
Company Overview
Industry Overview
Investment Highlights
Growth Strategies
Financial and Operational Highlights
Appendix
14

16. Consistent & Sustainable Growth Track Record
Total net revenue (RMB mm)
2,557.2
2,003.4
1,498.9
1,141.3
721.4 696.0
454.6
2008 2009 2010 2011 2012 11Q4 12Q4
Operating cash flow (RMB mm)
572.5
457.5
335.3
248.6
106.1 154.5
4.4
2008 2009 2010 2011 2012 11Q4 12Q4
15

17. Sustainable Profitability
EBITDA exl. SBC (RMB ‘000,000)
23.3% 21.6% 21.0%
23.3% * 22.7%
20.1%
146.4
118.0
608.4
348.8 455.6
229.7
4Q11 4Q12
2009 2010 2011 2012
Adjusted EBITDA Adjusted EBITDA Margin
Adjusted EBITDA Adjusted EBITDA Margin
Net Income attributable to 7 Days (RMB ‘000,000)
6.9%
7.9% * 6.4%
6.5%
5.4%
176.0
117.7 128.9
35.2 37.9
(104.0)
4Q11 4Q12
2009 2010 2011 2012
Net Income Net Margin
Net Income Net Margin
* For 2010, there was positive impact from EXPO held in Shanghai during May to Oct.
16

18. Managed Hotels - Record Expansion with Sustainable Operational
Performance
4Q & FY12 operating performance:
 320 new hotels added during last twelve months
 Y-o-Y ADR for 4Q and FY 2012 increased by 2.0% and 1.4% respectively
Key operating metrics
Average Daily Rate (RMB) Occupancy Rate RevPAR (RMB)
156.2 156.7 155.8 158.0 154.3 157.4 82.8% 84. 0% 81.5% 80.3% 80.0% 77.4% 129.3 131.6 127.0 126.9 123.5 121.9
2009 2010 2011 2012 4Q11 4Q12 2009 2010 2011 2012 4Q11 4Q12 2009 2010 2011 2012 4Q11 4Q12
17

19. Leased & Operated Hotels - Improving Mature Hotel Performance
4Q & FY 2012 Operating performance
 Y-o-Y ADR for 4Q and FY 2012 increased by 1.6% and 0.5% respectively
 Improving mature hotel metrics demonstrates underlying strength of portfolio
Key operating metrics
Average Daily Rate (RMB) Occupancy Rate RevPAR (RMB)
160.0 164.9 166.2 167.0 165.8 168.5 89.2% 91.0% 87.9% 82.9% 86.4% 79.2% 142.7 150.0 146.0 138.3 143.3 133.4
2009 2010 2011 2012 4Q11 4Q12 2009 2010 2011 2012 4Q11 4Q12 2009 2010 2011 2012 4Q11 4Q12
18

20. Agenda
Appendix
Management team
Industry Overview
Hotel business model and economics
Income statement & balance sheet
Reconciliation of GAAP and non-GAAP results
19

21. Management Team
Boquan He, Chairman Nanyan (Alex) Zheng, Chairman
 Founder and former CEO of Robust Group  Over eight years management experience in China
 Leading Chinese F&B company later acquired by high-growth companies
Danone
 Four years at Ctrip.com,
 Over 20 years of entrepreneurial and consumer sector  Vice President, marketing
experience  General Manager, southern China
 “The Best Angel Investor”
 Highly respected entrepreneur and award-winning
 “2008 Top Ten Angel Investors” industry leader
Yuezhou Lin, CEO
 One of the founding management team members of
7 Days
Principal Shareholders*
 Over 7 years with the Company
 Held various key functions
 Expert in IT system, e-commerce platform,
Prototal Enterprises Limited
business development
23.5%
(Owned by Boquan He)
WP RE (Cayman) International Ltd
Eric Haibing Wu, CFO 16.0%
(Owned by Warburg Pincus)
 Over nine years of work experience in Happy Travel Limited
11.7%
PricewaterhouseCoopers in the U.S. and China
(Owned by Actis)
 Specialized in internal controls, risk
management, corporate governance and audit Fortune News International Limited
support 9.1%
(Owned by Nanyan Zheng)
 CPA and MBA
* As in Company’s 2011 20-F report
20

22. The Chinese Economy Hotel Chain Industry Today:
A Highly Fragmented, Early-stage Industry
US China
Growth  US market  China market
potential  2.5 economy hotel rooms per 1,000 people  0.6 economy hotel rooms per 1,000 people
 Established brands  Relatively new phenomenon
Branding  68% of hotels with a brand affiliation  Only 15% of hotels with a brand affiliation
 Dominated by a small number of players  Highly fragmented
Fragmentation  Largest player, Choice, has 6,243 hotels1  Largest player, Home Inns, has 1,772 economy hotels1
 Smaller population base  Larger population base
 312mm  1,348mm
 Established middle class  Large and growing middle class
Population size2
 108mm+ households with income over US$10,000  20mm+ households with income over US$10,000
 Moderate population density  High population density
 9 cities with over 3mm population  Over 250 cities with over 3mm population
Largely untapped market in China allows significant expansion opportunities
Sources: STR Global, China Economy Hotel Survey, Global Insight, CEIC Data, U.S. Census Bureau, www.inn.net.cn, IMF
¹ Data as of 2012Q4; ² United Nations population database, data projection for 2010; Population data from IMF as of 2011
21

23. Industry Growth Well Supported by Underlying Demand Catalysts…
China GDP (RMBtrn)
47
40
22 31 34
18 27
Internet population Domestic travel spending
2005 2006 2007 2008 2009 2010 2011
(mm) (RMB bn)
Fast-growing
1,931
457 513 China economy
384 1,258
273 1,018
210 777 875
111 137 529 623
2005 2006 2007 2008 2009 2010 2011
Large Robust 2005 2006 2007 2008 2009 2010 2011
Internet domestic
population tourism
Total contribution of Travel & Government expenditure on
Tourism to GDP (RMB bn) Growing tourism industry (RMB bn)
GDP
contribution Increasing capital
of Travel & investment for
206
Tourism tourism 155
182
4,156 141
2,616 3,114
3,398 3,562 3,709 development 102
120
2006 2007 2008 2009 2010 2011
2006 2007 2008 2009 2010 2011
Sources: National Bureau of Statistics of China; China Statistics Yearbook (2011); World Travel and Tourism Council 2012; iResearch; CEIC Data
22

24. Addressable market
 ~9,860 hotels  Large number of
low-end
 ~0.9 million  Highly
guesthouses
hotel rooms fragmented operated by
1–3 star-rated Economy Private independent
hotels1  Mixture of hotels2  Dominated guesthouses
globally flagged largely by local operators
hotels and operators  Non-standardized
locally run accommodations
hotels
Top 8 economy hotel brands in China2
Number of hotels (as of December 31, 2012)
Managed hotels Leased-and-operated hotels
1,438 1,345
981 970
652 492
690
465
192 466 447
970 334
786 853
516 498 466 447 151
183
Home Inns+ 7 Days Inn Hantings³ Green Tree Jinjiang Thank Super 8 Motel 168+
Growth of economy hotel chains has been accelerating due to growing consumer demand
for well-managed and affordable hotels
+ Motel 168 was accquaried by Home Inns in 2011
1 China Tourism Bureau as of 1Q 2012
2 2012Q2 China’s Budget Hotel Ranking by Inntie (http://www.inn.net.cn/)
³ Excluded 54 hotels of Starway
23

25. Leased-and-operated Hotels vs. Managed Hotels
Managed hotels Leased-and-operated hotels
 Capitalize on our hotel chain’s maturity and brand recognition  Lease existing properties from real estate owners
without the same level of capital expenditure  Large supply of qualified buildings owned by PRC state-owned
enterprises in desirable locations
 License our brand to third parties and manage the hotels, including
hiring and training hotel staff under stringent control of 7 Days Inn’s  Convert properties to conform to 7 Days Inn standards
quality standards
 Easily replicable product designs, such as modular bathroom and
furniture designs, expedite installation and fit-out time
Business  Unified management and quality control standards
model  All hotels are operated and managed under 7 Days Inn’s unified hotel operating system, including management functions such as: staff
recruitment, training, daily operation, financial management, sales and marketing, etc.
 Provide full range of services to managed hotels so as to meet the quality control and internal control standards of leased-and-operated hotels,
including decision-making assistance, customer base and efficiency analysis, investment and consulting services, cost control analysis and
guidance, etc.
 Recruitment, training, and management of all hotel managers and staffs conducted by head office, with rigorous selection process
 Centralized procurement and unified financial management; gradually reduce average cost by achieving economies of scale
 Mature IT infrastructure (e.g. central reservation system and hotel management system) and service platform effectively centralize the
monitoring and quality control of all hotels
 High-margin with minimal cost  Lean capital deployment
 Ongoing management fee 5-7% of hotel revenues  RMB52,000 (US$7,613) per room
 One-time management fee – Industry average of RMB62,500 (US$9,151)
Economics  Fast pay-back
 Revenues from managed hotels have grown significantly
 Typical conversion period of 4 months
– Versus more than one year construction period for own-build-
operate model
24

26. Streamlined and Modularized Product Design
25 25

27. Financial Information – 2012 FY Balance Sheet (Unaudited)
7 Days Group Holdings Limited
Consolidated balance sheet information
Quarter Ended
31/Dec/11 30/Sep/12 31/Dec/12
RMB' 000 RMB' 000 RMB' 000 US$'000
ASSETS
Current assets:
Cash 493,256 385,070 378,809 60,803
Pledged bank deposits 19,852 3,484 3,443 553
Short-term investment 10,000 - - -
Accounts receivable 7,881 16,870 17,015 2,731
Prepaid rent 152,629 173,112 171,370 27,507
Other prepaid expenses and current assets 52,550 69,433 77,608 12,457
Hotel supplies 47,371 51,904 56,591 9,083
Amounts due from related parties - 87 87 14
Deferred tax assets 19,842 19,144 26,222 4,209
Total current assets 803,381 719,104 731,145 117,357
Property and equipment, net 1,701,431 1,851,653 1,970,763 316,329
Rental deposits 69,861 90,731 90,824 14,578
Land use right 24,044 23,581 23,426 3, 760
Prepaid rent 73,419 63,822 71,088 11,410
Intangible assets, net 30,426 27,272 26,221 4,209
Goodwill 61,041 61,041 61,041 9,798
Other non-current assets 500 - - -
Deferred tax assets 46,096 62,615 62,513 10, 034
Total assets 2,810,199 2,899,819 3,037,021 487,475
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable 249,592 247,871 300,240 48,192
Bills payable 16,009 13,182 11,475 1,842
Short-term bank borrowings 334,686 71,000 130,015 20,869
Accrued expenses and other payables 418,308 477,603 511,800 82,150
Amounts due to related parties 333 1,850 2,601 417
Income taxes payable 25,509 36,947 25,617 4,112
Total current liabilities 1,044,437 848,453 981,748 157,582
Long-term bank borrowings - 178,975 121,381 19,483
Accrued lease payment 206,113 238,642 256,472 41,167
Unfavorable lease contract liability 7,812 7,305 7,136 1,145
Refundable deposits 15,823 15,050 14,850 2,384
Deferred revenue 770 608 - -
Deferred rebate income 6,663 5,984 5,727 919
Borrowings from related parties 1,388 892 752 121
Income taxes payable 6,644 6,644 3,317 532
Deferred tax liabilities 4,565 2,935 7,527 1,208
Total liabilities 1,294,215 1,305,488 1,398,910 224,541
Equity:
Ordinary shares 141,080 141,133 141,317 22,683
Treasury stock - (67,137) (67,137) (10,776)
Additional paid-in capital 1,623,275 1,638,948 1,649,880 264,824
Accumulated other comprehensive income 330 1,136 (721) (116)
Accumulated deficit (238,348) (100,203) (62,303) (10,001)
Total 7 Days Group Holdings Limited share holders’ equity 1,526,337 1,613,877 1,661,036 266,614
Non-controlling interests (10,353) (19,546) (22,925) (3,680)
Total equity 1,515,984 1,594,331 1,638,111 262,934
Total liabilities and equity 2,810,199 2,899,819 3,037,021 487,475
26

28. Financial Information – 2012 Q4 & FY Income Statement (Unaudited)
Quarter Ended Year Ended
Dec 31 Sep 30 Dec 31 Dec 31 Dec 31
2011 2012 2012 2011 2012
RMB'000 RMB'000 RMB'000 US$'000 RMB'000 RMB'000 US$'000
Total Revenues 578,481 724,252 736,385 118,198 2,127,938 2,709,356 434,881
Leased-and-operated hotels 527,609 646,330 648,427 104,080 1,927,537 2,409,805 386,800
Managed hotels 50,872 77,922 87,958 14,118 200,401 299,551 48,081
Less: Business tax and surcharges (32,852) (40,854) (40,355) (6,477) (124,560) (152,171) (24,425)
Net revenues 545,629 683,398 696,030 111,721 2,003,378 2,557,185 410,456
Operating costs and expenses
Hotel operating costs (422,878) (517,129) (560,637) (89,988) (1,593,260) (2,033,508) (326,400)
Rental expenses (152,923) (179,513) (190,645) (30,601) (571,351) (707,692) (113,592)
Staff cost (88,794) (100,887) (114,169) (18,325) (317,374) (406,623) (65,267)
Depreciation and amortization (66,961) (80,602) (84,790) (13,610) (241,020) (314,189) (50,431)
Hotel supplies (25,967) (35,800) (40,439) (6,491) (97,452) (135,112) (21,687)
Utilities (35,618) (47,744) (46,554) (7,472) (145,468) (190,030) (30,502)
Other (52,615) (72,583) (84,040) (13,489) (220,595) (279,862) (44,921)
Sales and marketing expenses (18,336) (19,059) (31,702) (5,089) (49,222) (82,116) (13,181)
General and administrative expenses (69,542) (57,596) (52,555) (8,436) (209,786) (201,271) (32,306)
Total operating costs and expenses (510,756) (593,784) (644,894) (103,513) (1,852,268) (2,316,895) (371,887)
Income from operations 34,873 89,614 51,136 8,208 151,110 240,290 38,569
Other income (expenses)
Interest income 2,350 1,716 800 128 6,224 7,887 1,266
Interest expense (4,627) (5,221) (2,875) (461) (7,212) (21,459) (3,444)
Equity income (loss) of an affiliate - - - - 120 - -
Income before income tax 32,596 86,109 49,061 7,875 150,242 226,718 36,391
Income tax expenses (2,507) (25,011) (13,844) (2,222) (36,259) (67,540) (10,841)
Net income 30,089 61,098 35,217 5,653 113,983 159,178 25,550
Net income attributable to non-controlling interest 5,131 2,511 2,683 431 14,903 16,867 2,707
Net income attributable to 7 Days Group Holdings Limited ordinary shareholders 35,220 63,609 37,900 6,084 128,886 176,045 28,257
Basic earnings per ordinary share 0.23 0.43 0.26 0.04 0. 86 1.18 0.19
Diluted earnings per ordinary share 0.23 0.43 0.26 0.04 0.85 1.18 0.19
Other Comprehensive income (loss)
Foreign currency transaction adjustment, net of nil income tax (2,861) 480 (1,857) (298) (15,319) (1,051) (169)
Comprehensive income 27,228 61,578 33,360 5,355 98,664 158,127 25,381
Less: Comprehensive income attributable to noncontrolling interest (5,131) (2,511) (2,683) (431) (14,903) (16,867) (2,707)
Comprehensive income attributable to 7 Days Group Holdings Limited ordinary shareholders 32,359 64,089 36,043 5,786 113,567 174,994 28,088
27

29. Financial Information – Selected Non-GAAP Financial Statement
EBITDA(non-GAAP)
Quarter Ended Year Ended
Dec 31 Sep 30 Dec 31 Dec 31 Dec 31
2011 2012 2012 2011 2012
RMB'000 RMB'000 RMB'000 US$'000 RMB'000 RMB'000 US$'000
Net income attributable to 7 Days Group Holdings Limited ordinary
shareholders 35,220 63,609 37,900 6,084 128,886 176,045 28,257
Interest income (2,350) (1,716) (800) (128) (6,224) (7,887) (1,266)
Interest expense 4,627 5,221 2,875 461 7,212 21,459 3,444
Income tax expenses 2,507 25,011 13,844 2,222 36,259 67,540 10,841
Depreciation and amortization 68,382 83,237 87,429 14,033 246,007 324,126 52,026
EBITDA (non-GAAP) 108,386 175,362 141,248 22,672 412,140 581,283 93,302
EBITDA% 19.9% 25.7% 20.3% 20.3% 20.6% 22.7% 22.7%
Share-based compensation expenses 9,585 7,227 5,187 833 43,483 27,127 4,354
Adjusted EBITDA (non- GAAP) excluding share-based compensation
expenses 117,971 182,589 146,435 23,505 455,623 608,410 97,656
Adjusted EBITDA% 21.6% 26.7% 21.0% 21.0% 22.7% 23.8% 23.8%
Non-GAAP net income attributable to 7 Days Group Holdings Limited ordinary shareholders
Quarter Ended Year Ended
Dec 31 Sep 30 Dec 31 Dec 31 Dec 31
2011 2012 2012 2011 2012
RMB'000 RMB'000 RMB'000 US$'000 RMB'000 RMB'000 US$'000
Net income attributable to 7 Days Group Holdings Limited ordinary
shareholders (GAAP) 35,220 63,609 37,900 6,084 128,886 176,045 28,257
Share-based compensation expenses 9,585 7,227 5,187 833 43,483 27,127 4,354
Net income attributable to ordinary shareholders excluding share-based
compensation expenses (Non GAAP net income) 44,805 70,836 43,087 6,917 172,369 203,172 32,611
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30. Use of Non-GAAP Financial Measures
 To supplement 7 Days Group's financial results presented in accordance with U.S. GAAP, the Company has used the following non-GAAP
measures defined as non-GAAP financial measures by the SEC:
 Non-GAAP income from operations represents income from operations reported in accordance with GAAP, excluding share-based
compensation expense
 Non-GAAP net income represents net income reported in accordance with GAAP, excluding share-based compensation expense, loss
on debt extinguishment and change in fair value of ordinary share purchase warrants
 Non-GAAP earnings per ADS represents non-GAAP net income divided by the number of ADS used in computing basic and diluted
earnings per ADS
 EBITDA represents net income reported in accordance with GAAP, adjusted for the effects of interest income and expense, provision for
income taxes, depreciation and amortization
 Adjusted EBITDA represents EBITDA, excluding share-based compensation expense, loss on debt extinguishment and change in fair
value of ordinary share purchase warrants
 7 Days Group believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing 7
Days Group’s financial performance and liquidity and when planning and forecasting future periods. Readers are cautioned not to view non-
GAAP results on a stand-alone basis or as a substitute for results under GAAP, or as being comparable to results reported or forecasted by
other companies, and should refer to the reconciliation of GAAP results with non-GAAP results for the periods set forth in the tables at the
end of this release
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